** Top U.S. oilfield services firm SLB reported Q1 results last week that were in line with Wall Street estimates
** However, Q1 core profit came in at $2.06 bln, missing expectations of $2.07 bln - LSEG data; shares closed 2.1% lower on Friday at over one-month low of $49.85
NORTH AMERICA WEAKNESS WEIGHS
** J.P. Morgan ("overweight") cuts PT to $64 from $65, says SLB reiterated its 2024 global revenue outlook despite softening activity in North America associated with weak natgas prices and Aramco suspending ~20 jackup contracts for 2024, which would be offset by additions in onshore gas activity
** TD Cowen ("buy 1") cuts PT to $63 from $64, highlights concerns of maturing upstream spending being an overhang on stock
** "SLB's pending acquisition of CHX (ChampionX) will temporarily pause SLB's repurchase activity, until CHX's shareholder vote, suggesting a significant acceleration in buybacks in H2 2024"
** Citigroup (PT $65, "buy"): Says "SLB slumped on Friday due to a disbelief that full-year guidance was still reasonable, despite their mid-teens EBITDA growth guide"
** "While a resumption of the buyback during 2H post the CHX shareholder vote should be helpful, an end to the estimate trims appears most important for the SLB investment narrative"
(Reporting by Vallari Srivastava in Bengaluru)
((Srivastava.Vallari@thomsonreuters.com;))
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